On October 14, 2008, the Federal Deposit Insurance Corporation (FDIC) adopted the Temporary Liquidity Guarantee Program (TLGP), under which:
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the FDIC will guarantee newly issued senior unsecured debt of banks, thrifts, and certain holding companies, and
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the FDIC will provide full coverage of noninterest bearing deposit transaction accounts, regardless of the dollar amount.
Eligible Institutions
Eligible Institutions under the TLGP include:
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FDIC-insured depository institutions
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U.S. bank holding companies
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U.S. financial holding companies
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U.S. savings and loan holding companies that engage only in activities that are permissible for financial holding companies to conduct under Section 4(k) of the Bank Holding Company Act.
For further information, please contact Timothy M. Sullivan or your regular Hinshaw attorney.
This alert has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship.
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